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    Tag: Interest Rates

    Why getting the right advice matters in today’s market

    Posted on by Georgia Flatley

    With the latest news showing mortgage rates climbing again in early 2026, many buyers and homeowners are feeling renewed uncertainty about their next move. With market uncertainty leading to changing interest rates, fluctuating property values, and new lending criteria, making the right decision has never been more important and that is where expert advice comes in.

    Navigating a changing landscape

    The property and mortgage market doesn’t stand still and currently it’s facing some real challenges.  Middle East are driving up energy prices, pushing inflation expectations higher, and causing lenders to increase fixed-rate deals. What may have been the best option six months ago might not be suitable today. Lenders regularly update their products, affordability checks can shift, and external factors like inflation or economic trends can influence your options.

    Having access to up-to-date, tailored advice ensures you’re not relying on outdated assumptions or generalised information.

    Mortgage rates

    While it’s tempting to focus purely on mortgage rates, the “best deal” isn’t always the one with the lowest figure. Factors such as product fees, flexibility, early repayment charges, and long-term suitability all play a crucial role.

    A good adviser will look at your full financial picture, helping you choose a solution that works for your circumstances now and in the future.

    Help avoid costly mistakes

    In a complex market, small misunderstandings can lead to significant financial consequences. From choosing the wrong mortgage term to overlooking hidden costs, these missteps can add up over time.

    Professional guidance helps you avoid these pitfalls, giving you confidence that your decision is well-informed and aligned with your goals.

    Help to save time and reducing stress

    Searching the market yourself can be time-consuming and overwhelming. With so many lenders and products available, knowing where to start can be a challenge.

    An experienced adviser does the work for you, narrowing down suitable options and presenting them clearly, so you can focus on making the right choice rather than sifting through endless information.

    Confidence in your next step

    Perhaps most importantly, the right advice gives you clarity. In a market that can feel uncertain, having a trusted expert by your side provides reassurance that you’re making a sound decision.

    How PM+M can help

    No matter where you are in your property journey, getting the right advice isn’t just helpful, it’s essential. In a changing market, it can make the difference between simply securing a mortgage and securing the right mortgage for you.

    If you’re unsure about your next step, speaking to a professional could be the best option for you.

    Contact Mark Chadwick using the buttons below.

    PM&M Mortgages Ltd is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority.

    YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

    PM+M’s Stephen Robinson: Cautious optimism for North West dealmakers

    Posted on by Rebecca Campbell

    The UK economy continues to present a mixed picture. Overall growth remains subdued, but this headline view masks significant variation across sectors and regions. For owner-managed businesses in the North West, this divergence is particularly important, as many locally owned companies continue to perform well despite wider economic uncertainty.

    Across manufacturing, professional services, technology and healthcare – all sectors with a strong North West footprint – many owner-managed businesses have proven resilient. Management teams have responded to rising costs and softer demand by tightening operations, investing selectively and focusing on sustainable profitability. As a result, many businesses are in better shape than might be assumed from the broader economic narrative, which is helping to underpin confidence in the regional deals market.

    Looking ahead, I expect M&A activity in the North West to build steadily over the next 12 months. For many owner-managers, the last two years have been characterised by caution. Political uncertainty, inflation and rapidly rising interest rates led some to defer exit plans, succession strategies or growth-by-acquisition ambitions. In particular, nervousness following the last two UK Budgets created hesitation around valuations, tax outcomes and future cash flows. However, I am seeing that nervousness is now beginning to ease.

    While uncertainty has not disappeared altogether, business owners are becoming more comfortable with the current environment. Buyers and sellers are increasingly aligned on price expectations, and there is greater realism around deal structures, including earn-outs and deferred consideration. As a result, confidence is gradually returning, supporting a more active M&A pipeline.

    Interest rates, of course, remain a central consideration for owner-managed deals, particularly where funding is required for leveraged transactions or bolt-on acquisitions. Recent reductions have been modest, but they have helped improve sentiment and, importantly, provided greater clarity on the likely direction of travel. This stability allows owners to plan transactions with more confidence, even if rates remain higher than historic lows.

    My feeling is that funding costs will decline slightly over the coming months, marginally improving the viability of deals that may previously have struggled to stack up. In the owner-managed market, where transactions are often more sensitive to cash flow and debt service, even small reductions in interest rates can materially improve affordability and lender appetite.

    The funding environment is also showing signs of gradual improvement more generally. Lower borrowing costs may encourage owners to revisit acquisitions, refinancings or succession solutions that were paused during the period of heightened uncertainty. While lenders remain cautious, there is increasing support for well-prepared businesses with strong management teams, robust financial information and a clear strategic rationale.

    Crucially, small improvements in capital availability can make a significant difference to transactions at the margins. For owner-managers considering an exit, a partial sale, or a transition to the next generation, this shift could open up options that were previously unavailable.

    Overall, while the economic backdrop remains challenging, the outlook for corporate finance and deal activity in the North West is increasingly positive for owner-managed businesses. Confidence is rebuilding, funding conditions are becoming more supportive, and high-quality businesses continue to attract interest. For owners considering a transaction in the next one to three years, now is an opportune time to review options, prepare early and seek advice to ensure they are well positioned when market conditions align.

     

    Mortgage rates drop to lowest since 2023 – is now the time to secure yours?

    Posted on by Georgia Flatley

    The Bank of England’s decision to cut rates to 3.75% could open new opportunities for prospective homeowners, current homeowners and those looking to remortgage.

    What does this drop mean for prospective homeowners?

    Lower interest rates means that the cost of borrowing cheaper, reducing monthly mortgage payments and making home ownership more appealing for first-time buyers.

    Although this is a positive, some lenders may still be cautious. Factors such as affordability checks, credit history, and market uncertainty can influence lending decisions, so it is still important you are prepared in advance to present yourself as a reliable borrower.

    It’s also important to factor in all costs – initial fees such as your deposit, solicitor charges, and other expenses should be factored in to ensure your financial stability. Read our guide to buying your first home here.

    What does this drop mean for those on fixed, variable or tracker mortgages?

    For those on variable or tracker mortgages this change should take effect immediately and you’ll notice a reduction in your monthly rates from January onwards.

    For those with fixed rate mortgages, whether you are looking for your first home or your fixed rate is coming to an end, you should start to see these rates coming down.

    What does this drop mean for those looking to remortgage?

    For those looking to remortgage, the interest rate drop could lower monthly costs compared to previous deals. If you are currently on a variable or tracker mortgage, now could be a good time to switch to a fixed rate in order to secure your finances and ensure the stability. However, it’s worth noting that rates could fall further in the next six months, so timing and careful consideration are key.

    If you’re planning a home renovation or want to release equity for other purposes such as funding education or making a major purchase, now could be an ideal time to remortgage. Lower interest rates can make borrowing more affordable, helping you access the funds you need while keeping monthly repayments manageable.

    Get in touch

    With the constantly evolving interest rate landscape, it can be challenging to know which option is best for your circumstances.

    At PM+M, our expert mortgage director, Mark Chadwick, can offer you tailored recommendations on the most suitable mortgage products based on your circumstances and the latest rate developments.

    For further advice and to explore your options, please contact Mark Chadwick by clicking the button below.

    PM&M Mortgages Ltd is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority.

    YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

    Market update: what’s happening and what it means for you

    Posted on by Rebecca Campbell

    As the summer months rolled in, global financial markets seemed to take a breather from the drama of trade tensions and political headlines. Instead, investors shifted their focus back to the basics: how companies are performing, how economies are growing, and the ongoing excitement around artificial intelligence (AI).

    Economic overview: mixed signals across the globe

    While most regions saw little change in economic growth, the United States raised some eyebrows. A major revision to job data revealed fewer new jobs than previously thought, and economic activity slowed during the summer. This led to increased concern about the health of the US economy.

    The US dollar, which had been weakening throughout 2025, found some stability during the quarter. It even regained some ground against the British pound, which is important for UK investors with exposure to US assets.

    Inflation: a growing concern

    Inflation (how fast prices are rising) is becoming a bigger issue, especially in the UK. We’ve been watching this closely, and now it’s clear that inflation could reach double the Bank of England’s target before the end of the year. That means everyday costs could continue to rise, affecting everything from groceries to housing.

    In the US, inflation is also creeping up. However, many companies are choosing to absorb these higher costs themselves rather than pass them on to consumers, likely due to uncertainty about the economy.

    Bond markets react

    Bond markets, which often signal investor expectations about inflation and interest rates, responded to these concerns. Yields on longer-term bonds rose in many countries, reflecting uncertainty about future inflation. In the UK and US, government spending plans added another layer of complexity.

    In the US, the Federal Reserve (America’s central bank) responded to weaker job numbers by cutting interest rates in September, a move aimed at managing risk and supporting the economy. However, not all Fed officials agreed on the path forward, with some suggesting rates should fall below 3% by year-end.

    Back in the UK, the Bank of England faces a tough balancing act. Inflation is proving stubborn, especially in areas like housing and services, making it harder to decide whether to raise or lower interest rates. This uncertainty caused the UK bond market to shift slightly, as investors tried to make sense of the situation.

    Stock markets: AI and emerging markets shine

    Global stock markets saw a shift in leadership this quarter. The US continued to perform well, driven by enthusiasm around AI and related investments. But it wasn’t the only star.

    China stood out, with its tech sector attracting investors thanks to lower valuations compared to the US. Taiwan and South Korea also delivered strong returns, although India’s stock market lagged behind.

    Closer to home, UK and European markets made gains, especially among larger companies. Japan’s market also picked up, helped by a new trade deal with the US and strong company fundamentals, including widespread share buybacks.

    Looking ahead: what should investors expect?

    The more positive mood over the summer has pushed many stock markets into double-digit returns for the year so far. However, UK investors with overseas holdings may have seen some of those gains reduced due to the weaker pound.

    There’s an interesting contrast between stock and bond markets, especially in the US. While bond investors are worried about slowing economic growth, stock investors remain optimistic, focusing on AI innovation and increased merger and acquisition activity.

    Bond markets often spot trouble before stock markets do, but they can also overreact. In the UK, bond investors are more focused on inflation and how it might be controlled without hurting the economy.

    As we head toward the end of the year, expect more headlines about inflation, interest rates, and economic growth. But remember: not all noise is worth reacting to. Staying focused on long-term goals and maintaining a well-diversified portfolio is often the best approach.

    Get in touch

    If you would like to discuss your investments in more detail, or require tailored advice specific to your situation, please get in touch by emailing financialplanning@pmm.co.uk or by calling 01254 679131.

    The value of investments can fall as well as rise. You may not get back what you invest.

    The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.

    Rising interest rates and the impact on Corporation Tax payable

    Posted on by Rebecca Campbell

    As you may be aware, from April 2023, the main rate of Corporation Tax (CT) will rise from 19% to 25%. This, paired with ever-increasing interest rates, could have a big impact on cash flow.

    The Bank of England base rate has been rising for some time and currently stands at 3.5%. This in turn leads to HMRC increasing interest charged on the late payment of tax.

    For a business that doesn’t pay within one of the large company instalment regimes, tax owed is due 9 months and 1 day after the year end. If tax is paid late, interest will be charged at base rate plus 2.5% per annum on the outstanding balance. The current late payment interest rate is 6%, a rise of 3.25% since January 2022

    It’s also worth mentioning that the repayment interest receivable on amounts overpaid has also increased. This is currently set at base rate less 1%. For a large company that falls into the instalment regime, the rate of interest on under paid instalments of CT is set at base rate plus 1%. The current instalment debit interest rate is, therefore, 4.5%, a rise of 3% since February 2022.

    Credit interest received on overpaid quarterly instalments or early payments of CT has increased to base rate less 0.25%, currently standing at 3.25%. If you are business owner who pays CT via the large scheme (annual taxable profits between £1.5 million and £20 million) or the very large scheme (annual taxable profits over £20 million), and you therefore pay tax in quarterly instalments, the rising interest rates, which we expect to rise further to control inflation in the coming months, could significantly increase the cost of your payments.

    Following the tax rate change in April 2023, large companies making instalment payments based on their expected tax liability for straddle periods should consider increasing their payments if they wish to avoid interest charges.

    For further information on the upcoming CT rate increases, read our recent blog by clicking here.

    Get in touch

    If you would like further advice based on your specific circumstances, please contact corporate tax assistant manager, Andy Kirkaldy, by clicking the button below.